The Government has unveiled the final details of its carbon-reduction commitment (CRC) scheme to improve energy efficiency in large public and private sector organisations.
The Department for Energy and Climate Change (DECC) has made some alterations to the scheme, following an extensive consultation with stakeholders.
In order to smooth its introduction, and help ease the upfront costs, organisations will now only have to report emissions in the first year (2010/11) before having to buy allowances for subsequent years thereafter.
In year two (2011/12), ‘extra weighting’ will be given to firms which have taken early action to improve energy efficiency, and further recognition will be given to those who use on-site, renewable technologies, such as wind turbines and solar panels.
Organisations will also be given more flexibility in how they participate, and subsidiaries which are large enough – at least 60,000MWh – to qualify in their own right, are free to do so. The CRC will now be referred to as the CRC energy efficiency scheme.
Energy and climate change minister, Joan Ruddock, said the public sector had a central role to play, and this would include all departments, regardless of their size. ‘The CRC energy-efficiency scheme will help organisations become more energy efficient, save significant sums of money on fuel bills, and show customers, clients and competitors that their organisation is a leader in tackling climate change.’
The mandatory scheme aims to help large organisations play their role in contributing to emissions reductions – of at least one-third of 1990 levels by 2020 – through improved energy efficiency. The DECC forecast it would save participating organisation around £1bn a year by 2020, through cost-effective energy-efficiency measures not yet being taken up.
Danny Stevens, the environmental industries commission’s policy director, described the CRC as the type of policy needed, but called on the Government to beef it up. ‘We remain concerned that the proposals are not ambitious enough to secure this huge business and climate change mitigation opportunity,’ he said.
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